Benefit warning as 300,000 Post Office accounts to be axed - all the changes explained

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https://www.mirror.co.uk/money/benefit- ... e-25331072

Those who claim benefits through a Post Office card account will soon need to find another payment method to receive their cash as the system is being shut down from November 2022

Post Office card accounts are closing

Post Office card accounts are being axed next year, in a move that will affect more than 300,000 people.

The Post Office card account is a service linked to the benefits system that lets you receive your payments.

It is designed for people who don't have a bank account as they’re deemed easier to use.

They have no overdraft facility, which means people can’t get into debt.

But those who claim benefits through a Post Office card account will soon need to find another payment method to receive their cash.

There are estimated to still be 320,000 active Post Office card accounts today.

When will my Post Office account close?
The date for when you need to redirect your payments depends on what type of benefits you receive.

Those who get Universal Credit, the state pension or any other form of benefits from the Department of Work and Pensions (DWP) will need to have another payment method put in place by November 30, 2022.

This means you have little over a year to either set up a bank account, or let the DWP know of an existing bank account where you'd like your benefits moved in to.

There are other options too, which we explain below.

Post Office card accounts were meant to close for these types of benefits from November 30, 2021 but the DWP issued a 12-month extension on the closure due to the pandemic.

However, if you receive benefits from HMRC into your Post Office card account, you still only have until next month to redirect your payments.

HMRC will stop making payments of Child Benefit, Guardian’s Allowance and tax credits into Post Office card accounts by December 1, 2021.

This means you need to have another payment method set up by November 30, 2021.


What happens if I don't have a bank account?
If you're able to set up a new bank account, simply let the DWP or HMRC know your new account details and your payments will be send to this new address as normal.

Alternatively, if you already have an existing bank account, you can update DWP or HMRC with your details.

For those who don't want to open a bank account, you'll be able to use the Payment Exception Service.

The Payment Exception service allows those who don’t have a bank account to access benefit payments via the PayPoint network.

You can withdraw your cash either by using a payment card, voucher by email, or text message containing a unique reference number.

Either of these methods must be presented at a PayPoint outlet, which are in shops and newsagents, in order to access your benefits.

If you don't update the DWP or HMRC with your new details, you'll automatically be moved onto the Payment Exception Service.

The date you're paid and how much you get will not change.

How do I update my details?
It is important you update your details, otherwise your benefit money will be temporarily suspended until you sort out where your money will be redirected to.

You can update your Personal Tax Account or Child Benefit account online at Gov.uk or by calling 0300 200 3100.

Anyone getting tax credits can change their account details online via Gov.uk by calling the tax credits helpline on 0345 300 3900.

For DWP payments, you can call 0800 0857 133 to update your details.


For those with hearing difficulties, you can contact the DWP via the free-to-use service Typetalk on 0800 0857 146.

Alternatively, the DWP should have sent you a form in the post which you can fill out with your new account details and return.

Should I close my Post Office account?
Eventually yes, you will need to tell the Post Office to close your card account.